United States Senator Elizabeth Warren has written a letter to Treasury Secretary Janet Yellen, addressing Deputy Treasury Secretary Wally Adeyemo’s testimony before the Senate Banking Committee. In both the letter and the hearing, Warren focused on the importance of Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) measures.
Warren expressed her support for the implementation of more comprehensive AML/CFT regulations for stablecoins in the letter. Adeyemo appeared before the Senate hearing to discuss various Treasury proposals, including expanding sanctions powers to blockchain validator node operators. The Treasury outlined its enforcement goals in response to regulatory gaps in a document referred to by Warren as a “letter to Congress” dated November 2023. In her letter, Warren stated:
“It is worth noting that Warren was not referring to the stablecoin bill introduced in the Senate by Senators Kirsten Gillibrand and Cynthia Lummis on April 17, the day after she sent her letter. The Lummis-Gillibrand bill, which spans 179 pages, does not extensively address AML/CFT.”
Instead, it appears that Warren had in mind a bill that is expected to emerge from the House of Representatives, spearheaded by Finance Committee Chair Patrick McHenry and Ranking Member Maxine Waters. On April 8, Warren sent a letter to McHenry and Waters expressing similar concerns as those in her letter to Yellen. Warren concluded her letter to the treasury secretary by stating:
“Digital Chamber Senior Policy Associate Taylor Barr commented on the matter, possibly referring to the Lummis-Gillibrand bill, stating, ‘I would like to hear Sen. Warren’s opinion on the bill’s enhanced consumer protection language, the inclusion of receivership text, and the enforcement power of the Fed/OCC. All of these points seem to have been conveniently omitted from her talking points…'”
In summary, Senator Elizabeth Warren has emphasized the need for stronger AML/CFT regulations for stablecoins and has addressed her concerns in letters to both Treasury Secretary Janet Yellen and House Finance Committee members. The specific bill she referred to is expected to come from the House of Representatives rather than the Senate.